Are capital controls effective in the 21st Century? : the recent experience of Colombia

Are capital controls effective in the 21st Century? : the recent experience of Colombia / prepared by Benedict Clements and Herman Kamil.

This paper assesses the effects of capital controls imposed in Colombia in 2007 on capital flows and exchange rate dynamics. The results suggest that the controls were successful in reducing external borrowing, but had no statistically significant impact on the volume of non- FDI flows as a whole. W...

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Bibliographic Details
Main Authors: Clements, Benedict J. (Author), Kamil, Herman (Author)
Format: eBook
Language:English
Published: [Washington D.C.] : International Monetary Fund, 2009.
Series:IMF working paper ; WP/09/30.
Subjects:
Capital movements.
Foreign exchange rates > Econometric models.
Capital movements
Foreign exchange rates > Econometric models
Online Access:Click for online access
Description
Summary:This paper assesses the effects of capital controls imposed in Colombia in 2007 on capital flows and exchange rate dynamics. The results suggest that the controls were successful in reducing external borrowing, but had no statistically significant impact on the volume of non- FDI flows as a whole. We find no evidence that restrictions to capital mobility moderated the appreciation of Colombia's currency, or increased the degree of independence of monetary policy. We also find that controls have significantly increased the volatility of the exchange rate. Additional research is needed to assess.
Physical Description:1 online resource (25 pages)
Bibliography:Includes bibliographical references.
Source of Description, Etc. Note:Print version record.

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